T
TheGermsInDubs
New Member
Hello dear Members,
after reading some months in this forum, some 3 dubai visits in the last half year, here are just my 2 cents for you:
Basic Assumptions:
Frankfurt Rental: 10,-- Euro / m² / month + 2,50 Euro / m² / month service fees
-> 150 Euro / m² / year ALL IN
London Rental: 2 Pounds per sqf / month + 0.20 Pounds / sqf / month service fees
-> 26,40 Pound / sqf / year ALL IN
1 Euro = 1 Pound = 5 AED
1 m² = 10 sqf
European Service fees: 2,50 Euro / m² / month
-> 15 AED / sqf / year
Dubai service fees: 20 AED / sqf / year
Realistic Property Value: 12 times of yearly rent at reasonable service fees
Now as the basics are told, lets have a look to my (beloved) city of Dubai.
In my opinion the rental value of Dubai appartments should be UNDER the value of Frankfurt, even if there is no crisis at all. Currently there is not only a crisis, there are about 80% unsold eg unrented apps.
And now to the real estate value:
600 sqf 1 Bed
(600 / 10 x 150 x 12) - 50% crisis risk = 54.000 Euro / 270.000 AED
= 450 AED / sqf
3500 sqf 4 Bed
(3500 / 10 x 150 x 12) - (50% crisis risk + 25% high income risk)
= 157.500 Euro / 787.500 AED
= 225 AED / sqf
And to be totally honest: even this prices seem to high to buy at the current situation. On the other side, there is NOBODY going to sell at this prices.
So, what do you think?
after reading some months in this forum, some 3 dubai visits in the last half year, here are just my 2 cents for you:
Basic Assumptions:
Frankfurt Rental: 10,-- Euro / m² / month + 2,50 Euro / m² / month service fees
-> 150 Euro / m² / year ALL IN
London Rental: 2 Pounds per sqf / month + 0.20 Pounds / sqf / month service fees
-> 26,40 Pound / sqf / year ALL IN
1 Euro = 1 Pound = 5 AED
1 m² = 10 sqf
European Service fees: 2,50 Euro / m² / month
-> 15 AED / sqf / year
Dubai service fees: 20 AED / sqf / year
Realistic Property Value: 12 times of yearly rent at reasonable service fees
Now as the basics are told, lets have a look to my (beloved) city of Dubai.
In my opinion the rental value of Dubai appartments should be UNDER the value of Frankfurt, even if there is no crisis at all. Currently there is not only a crisis, there are about 80% unsold eg unrented apps.
And now to the real estate value:
600 sqf 1 Bed
(600 / 10 x 150 x 12) - 50% crisis risk = 54.000 Euro / 270.000 AED
= 450 AED / sqf
3500 sqf 4 Bed
(3500 / 10 x 150 x 12) - (50% crisis risk + 25% high income risk)
= 157.500 Euro / 787.500 AED
= 225 AED / sqf
And to be totally honest: even this prices seem to high to buy at the current situation. On the other side, there is NOBODY going to sell at this prices.
So, what do you think?
